October 07, 2014

President says capital, risk are key; agencies want more funding

President Barack Obama and top administration officials met on October 6 with the heads of federal financial regulatory agencies to discuss the status of reforms put in place since 2010 to lessen the chances for a repeat of the Great Recession. The president applauded regulators’ efforts to date but noted areas where more work is still needed.

A readout of the president’s meeting said he pressed regulators to find new ways to reduce excessive risk-taking in the economy. The president’s call to do more on risk comes as regulators move to finish compensation and capital standards reforms. The president also urged banking regulators to stay focused on imposing prudent capital cushions for the nation’s biggest and most global financial institutions. According to the White House’s account, those in attendance also talked about their ongoing need to coordinate via the Financial Stability Oversight Council, while the president told regulators to look for ways to make their rules more effective and scalable.

House Financial Services Committee Chairman, Jeb Hensarling (R-Texas), who did not attend the meeting, called on Senate leaders to act on the many bills awaiting votes. He also likened the “harmful consequences” of the Dodd-Frank Act to those he sees lurking in the Affordable Care Act.

“Another White House meeting between President Obama and an army of Washington regulators won’t do anything to help stressed families,” said Hensarling. “Instead, the President should get on the phone with Harry Reid and urge him to bring up the dozens of bipartisan jobs and regulatory relief bills passed by the House.”